Use the Following Codes to Indicate How the Cash Flow

question 171

Multiple Choice

Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method. (Choices may be used more than once.)
-Paid interest on a capital lease.

• A)Inflow from operating activity
• B)Outflow from operating activity
• C)Inflow from investing activity
• D)Outflow from investing activity
• E)Inflow from financing activity
• F)Outflow from financing activity
• G)Noncash investing and financing activity
• H)Not reported on statement of cash flows

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Definitions:

Multiple Structures

The existence or application of various organizational models or frameworks within a single company or system.

Decentralized

The distribution of authority, decision-making, or resources away from a central location or governing body, allowing for more local or individual control.

Highly

Describes something of great importance, to a great degree, or with intense quality.

Rules

Guidelines or principles that govern conduct within a particular context or system.